Abrams Financial Toronto, Insurance | Wealth Management | Tax Advisory


Medical_Students_01Why Do I Need Disability Insurance?

As a resident, you have invested a lot of time and money in your education. Protecting that investment is a crucial step at this point in your life. Disability insurance will provide you with a monthly payment in the event that an accident or sickness prohibits your ability to work and earn an income. Since you will soon be a self-employed professional, you are on your own to protect this financial risk.

When talking about disability insurance, many people think that it would take a catastrophic event to become disabled and make a claim. However this is not true – far from it. Most disability claims are non-catastrophic in nature. For example, claims are often made for a surgical recovery, broken bones, cancer, arthritis, muscular skeletal issues, etc. Many disability policies also cover partial claims, which means you are still able to work, just not full time or not to your full capacity. This provides flexibility so you can supplement your lost income easier and maximize your benefits.


What is Available?

Issue limits and discount can vary by insurance company. Below is the maximum amount of coverage you can receive as a resident without regards to income.

  • Resident – $4500
  • Fellowship – $8500
  • First year practicing family physician – $7500
  • First year practicing physician in a specialty – $10500

25 % discounts are available with both RBC and Canada Life disability plans. The contracts with these companies are all of a professional nature, however differences do exist. Speak with your Abrams Financial advisor to determine which is best for you.

If you have an existing policy, speak to us about how you can increase that policy to the maximum residency limit. If you do not have a policy, be sure to contact us before the end of residency to ensure your eligibility for a lifetime discounted premium. Application must be made within 6 month of graduating residency in order to be eligible.

Please call us for a complimentary financial check up (416) 238-5536 or email mdsupport@abramsfinancial.ca

What about PAIRO*?

*Other provinces provide similar benefits. There may be some differences from what is outlined below.

PAIRO is the Professional Association for Interns and Residents of Ontario that provides health benefits and includes a mandatory disability plan. The disability policy provides for 70% of your resident salary to continue in the event of a disability. There are substantial differences between the PAIRO contract and an individual one. Careful attention should be paid to disability contracts since they dictate how you get paid, when you get paid, and for how long. Please consult an insurance representative for more information on the contractual provisions.

The disability policies that Abrams Financial recommends to medical residents do not include an integration provision that would reduce disability benefits at time of claim should benefits become payable from other sources. This means that regardless of what PAIRO pays at time of claim, your individual policy would continue to pay 100%. As a resident, your income is not that of a physician and you are relying on this future income potential to pay off accumulated debts and provide the lifestyle you envision for yourself and your family. If a disability strikes during residency, having both benefits paid at time of claim would provide for additional income that would enable you to pay off your debts and cover living expenses, while having some money left over.



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